By Nathalie Voit
The number of Americans living paycheck to paycheck fell slightly from a high of 61% in June to 59% in July, LendingClub and PYMNTS said in a just-released report.
According to the monthly collaboration with Lending Club, about three-quarters of consumers making less than $50,000 a year were living paycheck to paycheck in July. Among those earning between $50K and $100K, 62.5% reported living paycheck to paycheck last month.
Americans at the upper end of the income ladder have also been struggling to make ends meet.
Of those making $200,000 or more, approximately 30% said they were living paycheck to paycheck in July. However, that’s down from 36% in the previous month, according to a June LendingClub survey.
“New Reality Check: The Paycheck-To-Paycheck Report,” August 2022 edition found that the share of high-income earners living paycheck to paycheck has gradually increased over the past twelve months. While 34% of consumers earning $100,000 or more a year reported living paycheck to paycheck in July 2021, that number has risen to 43% over the past year. Among those making $150–200K annually, 48% were stretched too thin last month, up from 41% in June 2022 and 35% in May 2022.
However, workers are starting to find some much-needed reprieve.
For one, data from the Bureau of Labor Statistics found that real inflation-adjusted average hourly earnings rose by 0.5% on the month in July.
Consumer prices also slowed down from their sky-high rate of 9.1% in June to 8.5% in July, below expectations.
Meanwhile, the national average for a regular gallon of gasoline dipped below $4 on Aug. 11 for the first time since March, AAA data shows.
Overall, the share of consumers living paycheck to paycheck fell by 2% on the month. While that number is still 5% higher compared to last July, the news is a welcome sign that inflation may finally be peaking.
